Internet marketing provides businesses with several advantages however it has several benefits for customers which helps businesses to provide better customer service and also attracts more customers to shop online as it is more convenient and easier. Below is a list of advantages of internet marketing for customers.
Cheaper and more flexible than offline advertising:
Internet Marketing is cost effective as businesses will not have to worry about any travel, postage, printing or any other costs which makes it cheaper compared to traditional marketing. The advantage that this will provide to customers is that the businesses will have more money that they could invest into providing better customer service, for example entering new market sectors. At ASOS they could invest money into training their employees this will therefore improve the service that they are providing and hence they will have a competitive advantage. They could also invest the money into new fashion lines and by doing this it will attract a wider range of customers. The investments that ASOS have already made is that they sell children’s clothes and beauty products by doing this it provides customers with convenience as they can purchase a wide range of products from one place.
Also internet marketing is quick and easy. Therefore at ASOS any advertisement that they use can be set up quickly and can be placed on the internet within hours, also if any changes need to be made it can be done immediately. The advantage that this has for customers is that they can access the advertisements for a longer period of time and this can attract a wide range of customers. It also keeps the customers informed about any changes that have been made and this is a good method of customer service. At ASOS they place advertisements about new promotions and products that have been introduced. For ASOS advertisements play a big part on the way that the business promotes themselves and the way that they provide customers with information. They place many advertisements on their website and also magazines. This is an advantage for customers because they will receive more information on what the business is providing and if the business has advertisements they will be seen as an reliable business which will gain the customers satisfaction and loyalty. The advertisements also help the business to monitor and keep a track of what the business is providing and it can also be used as an method of market research. Below are images which show how ASOS promote themselves through advertisement on their website and magazines:
24/7 presence:
Another advantage of internet marketing for customers is that they can shop anywhere and time of day that they want as long as they have access to the internet. ASOS are a click business which means that a business provides its service and goods through the internet only. This means that there will be no stores for the customers to visit and they will have to log onto the businesses website to look at the products and to purchase them. The business will have a warehouse or some other facilities where the products will be kept and the products will be sent from here. Therefore ASOS operating hours will be 24/7 and this is a good method of customer service. This is because it is easy and simple to do, it also provides customers with convenience as they can shop whenever they want and they can purchase anything they want to and this is at the comfort of their home. At ASOS as well as operating 24/ 7 they have a customer care service which is operated from the website 24/7. Click businesses operate 24:7 and this is an advantage for customers as they can shop anytime which suits them. The evidence for them operating 24:7 is that customers can access and visit the ASOS website anytime and make purchases.
Offer convenience:
Another advantage of internet marketing is that it provides customer with convenience as it is easy and simple to do, it also provides customers with convenience and they can shop whenever they want and they can purchase anything they want to and this is at the comfort of their home. The customer will also be able to access most businesses as a lot of retailers operate online as well as in stores. Convenience can also be provided through the website if it is easy and simple to use the customers will return fro repeat business. The convenience that is provided to customers have helped customers attract more customers and this can be supported as they are the NO.2 player in the UK online clothing market and the number of active shoppers has increased to over 1.2million and they attract over 5.2 million visitors per month.
The ASOS website is very simple and easy to use, and includes a wide range of information, it is very bright which makes the website appealing and therefore attracts customers. Firstly there are a range of sections like women, men which therefore provides the customers with convenience as they can choose what section they would like to view. Customers can also create their own account online this will allow the customers to save details about any transactions that has taken place, the customers will also be able to save their payment and contact details which will save time and effort for customers when they use the website again. Also by making an account it will allow the customers to track their deliveries, they can save any documents and print at a later time, they will also receive monthly invoices and special discounted rates. The customers can also use the website to find out information like the businesses history, about how much different promotions, offers and events that is in store. If the customers experience any difficulties they can access the customer care site on the website and this should help to deal with any problems.
At ASOS they will be able to keep track of all the transaction taken place by the customers and therefore using this information they will be able to send the customers emails about products and promotions that they will be interested in. Below is an image that shows the ASOS website and the different sections on this website: It can be seen that they sell a wide range of goods for both men and women, this provides convenience as the ASOS customers can purchase lots of products from one place and it may also save them money as the more they shop it may be a reduction in the delivery charge. The website is also easy and simple for the customers to use as it is easy navigation and only basic skills are required to use the website. Another way that ASOS offer convenience to their customers is that there is an online service that customers can use if they have any questions or technical difficulties.
Above is an print screen which I have taken from the ASOS website and it shows how the website is simple and easy to use. As there is an drop down menu which navigates customers to the area on the website which they would like to visit which provides them with convenience.
Promotion:
Another advantage of internet marketing is that the customers can find out about the promotions taking place. This is because internet marketing enables businesses to make changes to their website immediately and they are able to use a wide range of graphics and multimedia which makes the advertisements more appealing and therefore attract more customers. If customers are aware of the promotions that are being provided by ASOS they may decide to shop there as they will be willing and able to spend more money.
Also by using internet marketing businesses can use their websites to promote stores that customers are able to visit, they can promote their brick and mortar presence. This benefits the business as they are able to attract more customers which can help to increase sale and revenue. It benefits the customers as they will be able to use the website to find out the details of the stores and it is convenient for them as it could save them time and effort. ASOS is a click business which means that they only operate from the internet and the only premises that they do have is there warehouse and offices. So promoting their brick and mortar wouldn’t apply to them however the other things that they may promote is the wide range of products that they sell and the different services that they are providing like forums. ASOS also have regular promotions this is when they reduce the price of their products or they apply a free delivery charge for a certain period of time. Below are a few images which show the sorts of promotions that are used by ASOS. ASOS have regular promotions and are well known for providing high quality products at low prices.
Add value and satisfaction:
Internet marketing can help businesses to gain customer satisfaction and loyalty; this is because internet marketing can be measured. At ASOS they will be able to identify how much demand there is for the product in the market. This can be done by the business monitoring how many people are visiting the website. If ASOS see that customers are interested in a certain product they could invest more money into this product which could help attract new customers as well as retaining existing customers. If businesses try to ensure that they are meeting the customers satisfaction by taking feedback and suggestions to help improve their service it will help to create a better relationship between the business and customers.
At ASOS they try to provide their customers with value and satisfaction by selling products which have been seen on celebrities at cheaper prices, they also sell products for both genders. At ASOS they are always trying to improve the service that they are providing which will provide them with a competitive advantage. They do this as they have a forum on the website where the customers are able to give their suggestions and ASOS are also on social networks. Another way that ASOS provide value is that the customers are able to view products on the models and they can also be viewed as videos. By doing this it provides the customers with a better view of the product and it will provide customers to a similar shopping experience to what they would get if they were shopping down a high street, therefore they are provided with a competitive advantage.
At ASOS they provide their customers with value as they use a reasonable pricing strategy as the products that they sell are as seen on screen however sold at cheaper prices. They also use many methods of gaining the customers satisfaction they do this by selling a wide range of branded clothes for both men and women. Some of the brands include Adidas, Bench, Ben Sherman and D&G. They also have regular sales which means that they provide the customers with value and gain their satisfaction. Other ways that they gain the customer satisfaction is by providing an wide range of delivery methods like free returns, flexible delivery and free delivery when customers spend £75 or more. They also have an outlet section on their website which includes stock that have been reduced in price, this section includes stock that is reduced by 50% or more. Below is a print screen of this website:
The picture below shows how customers are able to track their order on the ASOS website and find out where their parcel is, by doing the customers will be aware of what is happening and will also help to gain customer satisfaction and loyalty.
Standardize sales performance:
Internet marketing can enable businesses to improve their sales performance and they can monitor this by looking at the number of hits that their websites receive and the average money that is spent by their customers. By taking this information the business can find ways of improving the service which can help to increase the number of sales. If the business is always improving their service it will help to meet the needs and demands of the customers which is therefore an advantage to them, as they will be more satisfied with the service hence they will return for repeat business.
ASOS use many techniques to ensure that they standardize their sales performance, for example they ensure that they are always taking suggestions from customers this will help them to identify their weaknesses and improve them. They have also entered new market sectors like beauty and children’s by doing this it will allow the business to attract more customers hence they will be able to standardize sales. At ASOS they have regular sales when the products are reduced by 50% or more. Currently 7% of the users make a purchase with an average basket size of £39.92 to £48.80. ASOS have an approximate average of 220,000 daily visitors; they have 3.3 million shoppers each month and have 1.8 million registered users. The sale for the year ending in 31 March 2008 was £81 million. Below shows one of the beauty products that ASOS has invested into and this will help the business to increase sales as it attract more customers and retain existing customers. By doing this it will the business to develop and expand hence widen the business opportunties and therefore increase sales and revenue.
Improve credibility:
If businesses have an improved credibility it has advantages for the customers. This is because it implies that the business is providing a good service and they are well known for their reputation which means it should be a safe and easy shopping experience without any hassle. At ASOS they are always trying to ensure that they carry out tasks which will enable them to attract potential customers as well as retaining existing customers. Also some businesses sponsor charities as it can improve their credibility and give them a better reputation. At ASOS they try to ensure that they improve their credibility by investing money into training their employees to high standards, by investing to market sectors which are popular and demanded by the customers. At ASOS they also encourage their customers to join their forums to take suggestions and also for customers to spread a positive image of the business. Also on the ASOS website there is a section which includes information about the positive features and success that the business has. For example ASOS was the first UK online company to launch a catwalk and these are uploaded onto the ASOS website. They have also received awards from cosmopolitan and other companies for the products and service that they provide. Below is an print screen of the ASOS website which shows one of the products shown on a model on an cat walk. By doing this it allows the customers to get an better view of the product and gain a similar shopping experience to what they would get if they was high street shopping this will therefore improve credibility.
Bargaining Power:
The customers will have more bargaining power this is because they will be able to compare prices from different sources. For example if a customer finds a product at the New Look website which is the same as what is being sold by ASOS however at a cheaper price. They will be able to give ASOS feedback, therefore ASOS may decide to look over their prices and may reduce some of the prices which will provide them with a competitive advantage and help retain customers. The advantage of this is that the customers will have an influence on the pricing strategy used by businesses and the price of the products will be suited to them.
At ASOS they have a reasonable pricing strategy; however some of their products are expensive. The price depends on what sort of product that the customer is purchasing. Most of the products are sold are products which are similar to what celebrities have worn but sold at cheaper, affordable prices. The main difference between the high street stores and ASOS is that there is a delivery charge. Currently 7% of the users make a purchase with an average basket size of £39.32 to £48.80. At ASOS they have regular sales when the products are reduced by 50% or more and these products are sold in the ASOS outlet section of the website.
ASOS have been named as 'ASOS.com is the credit crunch defying brand' this was stated by Esquire. This therefore shows that the business has a reputation for providing low priced products and this may be because of the customers bargaining power. Also on ASOS have many reviews on their Facebook account and other websites like www.asosreviews.comwhich include comments from a wide range of people about the high quality products provided at low prices. One of the reviews that I have found is from the ASOS website and the customer is an regular shopper and their view of the business is ' I am very impressed with the amount of choice on this site and it is always the first place I look when doing online shopping. The prices are reasonable and the sale section houses a lot of bargains, although it sells out very quickly as the website is getting increasingly more popular!' This review can be found on the website mentioned above. Below is a print screen of the ASOS twitter account and it shows the reviews that the business receives about the products and the prices.
Growth opportunity
By using internet marketing businesses will be able to expand their target audience this is because it can help to attract new customers as well as existing customers. Customers will be able to use the websites to find out information like what the business is about, what they have achieved in the past and what their plans are for the future. Businesses can use their website to provide information to customers about shares that can be purchased. If customers purchase shares, it will provide the business with more money that they can use to invest into projects. For example they can invest money into new fashion lines and brands, training their employees, improve their website, better delivery facilities. ASOS are a public limited company which means that members of the public are able to purchase business shares on the London stock exchange market. The ASOS shares are sold on the alternative investment market, this market allows small businesses to trade. There are several reasons for ASOS joined the AIM; firstly it helps raise the amount of capital that the business receives. The business can use this money to develop the business. It is easier and cheaper for the business to join the AIM listing. Therefore using internet marketing the customers will be able to find out this information and invest into the business if they want to. From research I have found out that on 22nd April 2010 the value of the shares was 637.00p and this has increased by 37.00p (6.17%). I have also found out some market data which is that the market that they are in London, symbol is ASC, the number of shares(mil) is 73.35 and the Market cap (GBP mil) is 440.08.
Two way communicative marketing:
Internet marketing can enable businesses and customers to communicate with each other. By doing this it helps the business to gain customer satisfaction and loyalty and develop a relationship between them and the customers. By developing a relationship the business will be able to take feedback from the customers which could help them to improve the service that they are providing. The business will also be able to provide a quick response to any problems which is a good method of customer service.
At ASOS they have a blog where customers are able to add their comments and opinions into an open conversation. On the blog customers are able to talk about the products and offers that are being provided at ASOS, they are also other discussions about celebrities and the latest fashion trends. The blog is a method of communication which enables the business to have conversations with their customers as well as the customers having conversations with other customers; this will therefore create a good relationship and will help gain customer satisfaction. Blogs are widely used, so many customers will be used to this sort of system and this therefore means that the business will be able to attract a wide range of customers. By creating a blog it will have many advantages for ASOS as they will be able to find out feedback and suggestions from the customers, this will help them to develop the business. Also blog’s are easier to create and maintain, and there is unlimited space so customers can continuously place their comments on the website.
ASOS also advertise on social networking websites as well like Face book and Twitter. On these websites, ASOS have created an account which customers are able to join and by doing this they will be regularly updated about new products and fashion trends. The customers will also be able to find out information about new sale events or promotions. The customers will also be able to view the products this is because images and videos can be placed on the web page. By joining a social network it will help ASOS to retain existing customers as well as attracting new ones. The customers will also be able to add comments, join in discussions and will be able to send links to other people. Below is an image of ASOS Facebook account and on this account customers are able to find out information about new products and offers as well as providing feedback and suggestions. Using the information that they recieve ASOS will be able to identify their weaknesses and improve them to provide a better service:
Cheap Market research:
For businesses to do market research it would be cheaper for them to use internet marketing and as it is cost effective the business will be able to invest more money. Market research is very important for businesses to use. Market research is when a business gathers information from their customers. The business will find out facts like what people buy, what they want, what they think and how they can improve and develop the service they are providing. At ASOS to gain this information they have online surveys and they also email customers to ask them about their opinions, this is much cheaper and easier to complete in comparison to traditional market research. They also have blogs and forums where customers are able to give their feedback and suggestions; this therefore means that ASOS can get a wider range of opinions and find methods of improvements. With cheaper market research it will mean that the business will be able to invest money into developing and expanding the business and by doing this it will gain customer satisfaction. Below is an print screen of the ASOS life website this is where the customers are able to communicate with each other and also with the business. It is an open conversation where anyone can join and leave their feedback. This is one of the sources of market research that the business will use as the customers will leave suggestions of new market sectors that the business can invest into and the customers can leave feedback of the faults that they have found within the business and they can find ways of improving this so it will allow them to provide better customer service.
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